Melton MakushuMelton Makushu was sued by his creditor for R6 000 being the value of goods purchased byhim from the creditor. The date was five years old, and was successful in pleading inprescription. The R6000 was shown in Melton Makushu's books as a creditor, but now thatthere has been a judgement, his bookkeeper would like to debit the creditor's account. Thecredit entry will be made either to his capital account or to his statement of comprehensiveincome.Required:Consider the normal tax consequences to Melton Makushu of the R6000 arising out of theabove event.

Amount of R6000 has no liability in the books of Melton Makushu .

Answered: was five years old, and was n in Melton…

Business

Accounting

was five years old, and was n in Melton Makushu's books ookkeeper would like to debit his capital account or to his st

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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